Chart 38 Fed has raised rates 13 times over the past 18 months: The Fed is surgically targeting the housing market.

Year Adjustable-Rate Mortgage as a Percent of Total Purchase Market
1995 32
1996 27
1997 22
1998 12
1999 21
2000 24
2001 12
2002 17
2003 18
2004 35
2005 30

Notes: For 2005, the figure is an estimate from the Mortgage Bankers Association. Adjustable-rate mortgage (ARM) percentage was at 10-year lows in both 1998 and 2001 at 12 percent. ARM percentage was at a 10-year high in 2004 at 35 percent. Currently, ARM percentage has decreased by 14 percent from its previous high to 30 percent.
Sources: Federal Housing Finance Board, Mortgage Bankers Association, and CIBC World Markets.